Largecap funds have done well in the more medium term time frame of 3-years, thanks to the buoyancy in the markets. These are the funds that invest in the larger sized companies and tend to generate returns though investing in large cap stocks. Here are 7 large cap funds that have given the highest returns to investors in the last three years. We have avoided taking similar schemes when considering these funds. Data has been picked from Morningstar.
Canara Robeco Bluechip Equity Fund
This seems to be a favourite of most analysts with Value Research, Morningstar and CRISIL all according the fund a 5-star rating. The 3-years returns from the fund is 18.57%, making it the No 1 fund for returns in the three year period from largecap funds.
On a longer time frame of 5-years, the fund has generated about 18% returns on an annualized basis, again not a bad set of returns at all. Investors can consider this fund purely on account of the ratings that it has.
The portfolio of the fund is solid, which is why the fund has generated good returns over the last three years. It has holdings in stocks like HDFC Bank, Infosys, ICICI Bank, Reliance Industries and TCS. One has a choice of investing in both the dividend and growth option of the fund. In any case mutual fund dividends are also taxable now.
Kotak Bluechip Fund
This fund is rated second in terms of returns over a three year period with returns of 16.61% on an annualized basis. This is a good 2% lower than the Canara Robeco Bluechip Equity Fund. Again, the portfolio is sound and has the top bluechip stocks like Infosys, ICICI Bank, HDFC Bank, Reliance Industries TCS. These are the same set of stocks which most mutual funds have amongst their top holdings.
We wish to emphasize one fact that there can hardly be any equity mutual fund scheme that has given consistently high returns every year. The list can keep changing as stock prices keep changing. So if a largecap scheme looks good today it might not be the case tomorrow.
Kotak Bluechip Fund was launched in 2013 and has given returns of nearly 15.33% since its launch. Investors who like to invest for 5 to 10 years can consider the same.
IDBI India Top 100 Equity Fund
To be honest this fund ranks third, but has not been accorded a solid rating by some of those agencies that rate mutual fund schemes. However, we would not like to comment on that, but with a 3-year annualized returns of 16.28%, this fund ranks third on the list of equity mutual funds that have given the best returns in three-years.
This fund is extremely small in terms of assets managed at Rs 468 crores only. Like peers it has exposure to stocks of Reliance Industries, HDFC Bank, Infosys, ICICI Bank and HDFC Bank, which form the top 5 in its portfolio.
Mirae Asset Largecap Fund
This fund is similar to the Canara Robeco Bluechip Equity Fund in a sense that the popular rating agencies that accord ratings to mutual funds have rated it as "5-star".
The returns on three years has been 16.27%, which makes it marginally lower than the IDBI India Top 100 Equity Fund. However, unlike IDBI India Top 100 Equity Fund this fund manages staggering amounts that total nearly Rs 28,000 crores. The 1-year returns from the fund has been 48%, thanks to the indices rallying.
BNP Paribas Largecap Fund
This is ranked fifth in terms of returns from the largecap equity space of 15.99% on an annualized basis. This fund is generally well rated with Value Research according it a 4-star rating. Under the growth plan the net asset value is around the Rs 128 mark. It does not have large assets under management which is around the Rs 1,000 crore mark.
Around 97.2% of the funds is invested in stocks, while the remaining is held in cash and cash equivalents. A good scheme for those looking at long-term investment, though the best bet at the moment would be the SIP route given the behaviour of the markets.
An SIP can be considered with a small monthly sum of Rs 300 only, which makes it very much affordable.
Axis Bluechip Fund
This fund like Canara Robeco Bluechip Fund has been highly rated and has been a consistent performer. With returns of 15.91% on an annualized basis over three years, this occupies the third position.
UTI Mastershare is amongst the oldest mutual fund schemes in the country. In fact, it was launched way back in 1986. With returns of 15.31% it occupies the same seventh position in terms of returns over three years.
Investors are advised caution before investing in the schemes above and should only invest if they are able to bear losses. Greynium Information Technologies, or the author should not be held liable for any losses suffered on account of the decisions based on the above article. Please consult a professional advisor.
About the author:
Sunil Fernandes, the author of the article is a stock market expert and has spent about 27 years covering stock markets and mutual funds. He has worked with various publications including Hindustan Times, Deccan Herald, Oman Economic Review and Dalal Street Investment Journal. He was also engaged in equity research analysis.